Assessment of Investment Management Activities

Archive - this information is for reference only and no longer maintained.

Introduction

This section sets out the guidance on assessing strategic fit for activities within the investment management activity class.

The investment management activity class comprises three types of activities with the following work categories:

Transport planning
- Work category 001: - Regional land transport planning management
- Work category 002: - Transport model development
- Work category 003: - Activity management planning
- Work category 004: - Programme business case development
Sector research
- Work category 811: - Sector research
Management of the Funding Allocation System
- Work category 911: - Investment in the funding allocation system (Transport Agency only)

Guidance on assessment of investment management activities is provided below for each type.

Assessment of Transport Planning

Strategic fit for Transport Planning

Default strategic fit - Transport planning

By default, the strategic fit ratings for transport planning activities are;

for Work category 001: Regional land transport planning management, the default is high and there is no requirement for further assessment.
for all other transport planning work categories, the default is low.

Requirements for medium rating – Transport planning

A medium rating for strategic fit may be given where the activity applies best practice planning and processes including adopting a coordinated approach with relevant stakeholders and:

is focused on significant change in actual or predicted transport demand or performance, and its drivers such as changes in industry, population, technology, energy and climate , where these changes are not accounted for in existing strategies and plans; AND

ensures:
- integration of modes, transport and land use planning issues and other infrastructure planning
- making better use of existing transport capacity, including services and infrastructure
- managing adverse environmental effects from land transport; AND

considers:
- wider transport network performance & capability
- safety
- value for money
- environmental and public health outcomes

Requirements for high rating – Transport planning

A high rating for strategic fit must only be given where the activity meets the requirements for a medium rating AND,

makes improvements to whole-of-network, long-term local, regional and national planning in response to significant changes in actual or predicted transport demand or performance, and their drivers such as changes in industry, population, technology, energy and climate; AND

addresses one or more of the following:
- easing of severe congestion
- optimised levels of service, operation and management of networks
- journey time reliability
- reduction in deaths and serious injuries in areas identified as being of high crash risk

Further information

Further information on Strategic fit assessment is provided in the section on Developing an Assessment Profile.

Effectiveness for transport planning

Criteria for effectiveness

For Work category 001: Regional land transport planning management, the default is high and there is no requirement for further assessment.

For all other transport planning work categories, all six criteria set out below are to be assessed for any programme or activity proposed for NLTP inclusion or funding approval. The explanations are a guide to assessment, highlighting aspects that need to be considered. If any of these aspects is not applicable to the activity then it should not form part of the assessment.

Criteria	Explanation	Rating
Outcomes focused	the degree to which the problem, issue or opportunity, supported by evidence, is significant enough to warrant further development consistency with levels of service in an appropriate classification system	L/M/H
Integrated	consistency with the current network and future transport plans consistency with other current and future activities consistency with current and future land use planning accommodates different needs across modes involvement of, or consultation with, appropriate stakeholders in developing the strategic case	L/M/H
Correctly scoped	the degree of fit as part of an agreed strategy or business case is of an appropriate scale in relation to the issue/opportunity covers and/or manages the spatial impact (upstream and downstream, network impacts) mitigates any adverse impacts on other results funding application is tailored to relative size, impacts and complexity, and confirms the problem	L/M/H
Affordable	is affordable through the lifecycle for all parties has understood and traded off the best whole of life cost approach has understood the benefits and costs between transport users and other parties and sought contributions as possible	L/M/H
Timely	delivers enduring benefits over the timeframe identified in the justified strategy or business case provides the benefits in a timely manner there is demonstrated urgency in the need to provide a solution to the problem, issue or opportunity	L/M/H
Confidence	manages current and future risk for results/outcomes manages data deficiency risks and identifies information gaps that will need to be addressed in the next business case	L/M/H
Overall	Assessment is based on lowest rating of all components	L/M/H

Further information

Further information on Effectiveness assessment is provided in the section on Developing an Assessment Profile.

Benefit and cost appraisal for transport planning

No benefit and cost appraisal rating is required for funding of transport planning activities. This means that the assessment profile for transport planning consists only of two factors, i.e. strategic fit and effectiveness.

Note that benefit and cost appraisal is required to obtain support for programme business cases that have been developed under Work category 004: Programme business case development. In other words, one of the outputs from developing a programme business case is a benefit and cost appraisal.

Assessment of the Sector Research Programme

The purpose of Sector research is to acquire new knowledge so that it can be applied by transport decision makers to deliver more effective, efficient and economic transport solutions.

The research programme is a nationally delivered programme managed by the Transport Agency.

The Transport Agency Research Programme Framework(external link) (scroll down to the heading on the Framework) provides research objectives, and approach to research investment, and seeks the activities required to achieve these objectives.

The framework is centred around five research areas for land transport, provides research objectives for each of the research areas, and lists research output areas of high and medium strategic fit, although the current focus is on high strategic fit. In addition, it aligns the programme with the work of transport decision makers; the Transport Agency, Ministry of Transport(external link) and Approved Organisations.

A default profile of High Strategic fit and High effectiveness is applied to the programme as a whole.

An assessment of the benefit and cost appraisal for the sector research programme is not required.

Assessment of IFAS

Investment in the funding allocation system (IFAS) is the activity that incorporates the processes, tools and systems required to plan, optimise and deliver the NLTP, thereby giving effect to the Government Policy Statement on Land Transport and complying with the Land Transport Management Act.

The activity is developed and managed as a nationally delivered activity as part of the Transport Agency business planning and financial management, and is incorporated within the current Transport Agency’s Statement of Performance Expectations agreed with the Minister of Transport.

A profile of High Strategic fit and High effectiveness is applied to the programme when developed as part of the current Transport Agency’s Statement of Performance Expectations.

The assessment of the benefit and cost appraisal for IFAS is based on the prioritisation of activities through the Transport Agency's business planning process. The assessor needs to consider whether a robust process has been applied to ensure value for money.

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